Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Invesco Large Cap Growth ETF (Symbol: PWB), we found that the implied analyst target price for the ETF based upon its underlying holdings is $79.44 per unit.
With PWB trading at a recent price near $72.40 per unit, that means that analysts see 9.73% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of PWB's underlying holdings with notable upside to their analyst target prices are Sherwin-Williams Co (Symbol: SHW), Yum! Brands Inc (Symbol: YUM), and Monster Beverage Corp (Symbol: MNST). Although SHW has traded at a recent price of $253.89/share, the average analyst target is 14.05% higher at $289.56/share. Similarly, YUM has 12.02% upside from the recent share price of $125.31 if the average analyst target price of $140.38/share is reached, and analysts on average are expecting MNST to reach a target price of $61.53/share, which is 10.78% above the recent price of $55.54. Below is a twelve month price history chart comparing the stock performance of SHW, YUM, and MNST:
Below is a summary table of the current analyst target prices discussed above:
| Name | Symbol | Recent Price | Avg. Analyst 12-Mo. Target | % Upside to Target |
|---|---|---|---|---|
| Invesco Large Cap Growth ETF | PWB | $72.40 | $79.44 | 9.73% |
| Sherwin-Williams Co | SHW | $253.89 | $289.56 | 14.05% |
| Yum! Brands Inc | YUM | $125.31 | $140.38 | 12.02% |
| Monster Beverage Corp | MNST | $55.54 | $61.53 | 10.78% |
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
Also see:
Specialty Chemicals Dividend Stocks BEAT market cap history
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
